Scania opens its first manufacturing facility in India

The commercial segement in India witnessed a major moment today with global truck and bus manufacturer, Scania inaugurating its first manufacturing facility in Asia. The manufacturing facility with an initial investment of Rs. 250 crore in Bangalore was inaugurated by Karnataka's Chief Minister, S. Siddarmaiah amongst other bigwigs from the government and Scania as well. The facility will serve as the company's head office and centre for all commercial operations across the country. The operations will consist of a final assembly of trucks with bodywork and building of complete coaches along with a service workshop and a central parts warehouse for timely service. The Narasapura plant will house two manufacturing units, one for truck assembly which has already started with the bus assembly initiating in May 2014. Currently the localisation is 18 per cent for trucks and 100 per cent for bus bodies. Scania will also employ over 800 people at this facility within five years.

"It gives me great pride to see one of the largest global companies setting up plants in Karnataka,” said Mr. Siddaramaiah. “It will not only provide an impetus to industrial growth in the region but also present significant employment opportunities to local residents. With its superior technological processes, large-scale manufacturing set-up and eco-friendly focus, the plant is a testimony to our emphasis on inspiring corporate India to reach greater heights.”

Mr Lundstedt said the state of Karnataka is an ideal location for company’s manufacturing operations due to proximity to customers. “Today marks the beginning of a new era for us in India, and it is our largest industrial footprint in Asia so far.”